Top 3 best life insurance providers compared

Technically speaking, there isn’t a ‘best’ life insurance provider, as the one that’s best for you will depend on your individual requirements.

It can be difficult to feel like you’ve made the right choice when buying life insurance. Therefore, below we have selected three of the biggest competing life insurance providers (Legal & General, Aviva and Royal London) to compare the features and benefits of each, helping you to choose the best option for you.

Price comparison – which is the cheapest Insurance provider?

The first obvious comparison to make would be price. With Legal & General and Aviva, premiums start from as low as £5 a month, and Royal London follows with premiums from £7 a month. However, the price does vary based on your personal circumstances and needs.

For example, your health, smoking status and how much cover you need are all factors which will affect the amount you pay.

Every insurer has a different way of calculating quotes, which means all three providers are likely to offer you different prices. As a result, shopping around and comparing quotes will help you to find the lowest available price.

It’s easy to do this by using a comparison site or by using an FCA-regulated life insurance broker.

Life insurance policy options – What do they offer?

Legal & General

• Level term life insurance
• Decreasing term life insurance
• Whole of life insurance (only available through a financial advisor)
• Over 50s life insurance
• Critical illness cover
• Joint life insurance

Aviva

• Level term life insurance
• Decreasing term life insurance
• Joint life insurance
• Over 50s life insurance
• Critical illness cover
• Free parent life cover

Royal London

• Level term life insurance (direct or advised)
• Decreasing term life insurance (direct or advised)
• Diabetes life cover
• Whole of life insurance
• Joint life insurance

Special features – who stands out?

At Legal & General, all policies come with an accidental death benefit. This is where a pay-out will be made if you pass away as a result of an accident while you’re waiting for a decision on your application.

This can be beneficial if you are unable to have an immediate decision from the life insurance company surrounding eligibility, for example, when more medical information is required, so it can provide instant cover for that ‘just in case’ protection.

They are one of the largest and oldest providers in the UK. Leading life insurance broker Reassured have written this Legal & General life insurance review if you require more information. You can also compare quotes on their website from other leading insurers free of charge.

Aviva offer a smartphone app called ‘Aviva Digicare+’ which customers are eligible for after purchasing life insurance from them.

The app offers annual health checks, nutrition support, Bupa Anytime Health line, mental health support, second opinion service and bereavement support. This is a free added benefit that can help you with general health and wellbeing.

Something that makes Royal London stand out is that they are a mutual society, which means that it is an organisation ‘ran by its members’.

As a not-for-profit business, profits are usually reinvested to help improve the service keeping customers best interests at heart for example offering fair prices and a pleasant experience. Royal London also offers a range of extra benefits with some of their policies, such as free terminal illness cover and separation benefit.

Most life insurance providers have special features and extra benefits included with their policies; unique to the company or offered by multiple companies. For example, most of the bigger insurers offer free wellbeing support which is a great perk.

Even if the factors listed above aren’t necessarily relevant to you, it’s likely that Legal & general, Aviva and Royal London have other special features available with their policies that could make them stand out to you among other companies.

Gift incentives – who offers the best free gift?

Some life insurance companies offer free gifts (most commonly in the form of a gift card) to entice buyers into arranging cover with them. Whilst Aviva and Legal and General both offer this incentive, Royal London currently does not.

Legal & General offers a £100 Amazon or M&S e-Gift Card when purchasing life Insurance and/or decreasing Life Insurance and a £120 gift card with an over 50s policy. Unlike other free gift offers, the value of the gift card you receive isn’t based on the cost of your premium. You’ll receive a £100 voucher regardless.

Aviva also offers a £100 M&S, Tesco or Amazon Gift Card. To be eligible for the gift you must purchase an Aviva term life insurance policy (including single or joint policies) or if taking out an Aviva critical illness policy as part of your life insurance.

However, the free gift shouldn’t sway your decision, it’s more important to find a low-cost policy first and a free gift is just a bonus!

The table below shows a summary of the key features and benefits of each life insurance provider that we have compared:

Insurer	Price	Policies	Features	Free gift	Pay out rates (For all policies)
	From £5	-Level term life insurance -Decreasing term life insurance -Joint life insurance -Over 50 life insurance -Critical illness cover -Free parent life cover	Aviva Digicare+ app	£100 M&S, Tesco or Amazon Gift Card	99.4%
	From £5	-Level term life insurance -Decreasing term life insurance -Whole of life insurance -Over 50s life insurance -Critical illness cover -Joint life insurance	Accidental death benefit & free wellbeing support	£100 Amazon or M&S e-Gift Card £120 gift card with an over 50s policy	96.7%
	From £7	-Level term life insurance (direct or advised) -Decreasing term life insurance (direct or advised) -Diabetes life cover -Whole of life insurance -Joint life insurance	A Mutual Society business	N/A	96%

In summary, it’s important to understand the features and benefits offered by the insurer and the policies they offer, to ensure that you’re getting everything you want out of a policy.

Although some companies may offer ‘better’ free gifts or add on benefits, making sure you receive a suitable and affordable policy is the most important part.

Comparing quotes will help you decide, as you can find the cheapest price this way.